Photo Courtesy of iLounge
As reported by Engadget:
HP CEO reveals why they dropped the iPod
Posted Sep 1, 2005, 1:33 PM ET by Peter Rojas
HP’s new CEO explained for BusinessWeek how there’s a perfectly good explanation for why his company decided to stop selling HP-branded iPods: it’s because they couldn’t dominate, errr, lead the market they way they’d wanted to.
There is a false notion that the iPod was not profittable for HP or that HP wasn't making the same margin had they designed their own player.
There was no R&D, no real packaging costs.
The differentiation was the Tattoos, the windows centric marketing, and the distribution channel.
It was also self propogating for HP to have iTunes installed on HPs and for the iPod to work directly with HP printers.
Read this previous Jackwhispers BLOG entry for more details:
HP = The Most Confusing Ally Apple Has Ever Had: Perspective On The iPod From A Former HP Rep